The investment – over one third of which is paid for by Hungarian taxpayers with a non-repayable amount of HUF 5.5 billion through a government decision – took 15 months to complete and will create 50 new jobs while maintaining the existing 600 jobs.
The factory in Dunaföldvár, south of Budapest, was built in 2018 and produces hygienic household paper products and base paper.
In Hungary, the Vajda-Papír group produces around 55% of household tissue paper products and accounts for almost three quarters of exports.
The factory expansion, which includes the acquisition of a world-class base paper machine, will double the production capacity of Hungary's leading manufacturer of hygiene paper products and triple its base paper production capacity. Paper production capacity will increase from 35,000 tons to 115,000 tons, significantly improving the company's ability to expand its foreign markets.
The company's annual production of sanitary base paper will far exceed domestic demand, making Hungary self-sufficient in these products, even with increased demand during and after the coronavirus epidemic. Consumption of sanitary paper is steadily increasing as hygiene expectations and needs grow, and there is still significant growth potential in Hungary. So, the company decided to invest in the expansion of the mill to meet the growing domestic and foreign market demand for high quality.
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